Reported on: The Edge Market
KUALA LUMPUR (Dec 16): G Capital Bhd’s 90%-owned subsidiary Gunung Hydropower Sdn Bhd’s has received the Sustainable Energy Development Authority’s (SEDA) nod for a higher feed-in tariff (FiT) rate for its small 10MW hydropower project in Sungai Perak, Salu.
In a Bursa Malaysia filing today, G Capital said Gunung Hydropower received SEDA’s feed-in approval certificate on Monday, which will increase its FiT rate from 25 sen per kWh to 28.98 sen per kWh.
In addition, the contract is effective from the scheduled FiT date of Dec 14 up to December 2025, while the yearly energy yield has been increased to 68 million kWh from 67.77 kWh.
This will boost annual revenue of the hydropower project by 15.9% over the 21-year tenure, but the FiT approval is not expected to have any material impact on earnings and earnings per share (EPS) of G Capital for the financial year ending Dec 31, 2020 (FY20), said G Capital.
At 3.15pm today, shares in G Capital were 4.5 sen or 5.714% higher at 92 sen, giving the stock a market capitalisation of RM282.12 million.